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Charlotte Amalie
Thursday, March 28, 2024
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So What Really Went Wrong?

Dear Source:
The general consensus today is that our faltering economy is the victim of excesses brought on by individual greed. So deceptive in its simplicity, it brings to mind the possibility of an evasion meant to forestall some substantial changes to both the educational system and political structure that have been so instrumental in the development of our cyclical 'boom/bust' economy.
Carefully considered, I don't believe 'greed' is really the problem, though it certainly is one of the consequences. Beginning at the level of the individual, our daily activities, in varying degrees reveal both a difficulty in dealing with external forces as well as a lack of inner discipline. Our modern American-styled life is a treadmill existence that demands ever greater blocks of time just to maintain the constantly changing level of an affluent standard of living. Each day brings a constant barrage of advertising meant to seduce us into consuming so much more than is good for us, and purchasing far more than we need or can afford. Until quite recently, with the economy still spinning quickly, the majority were generally over worked, over stressed, over weight and over drawn financially. And yet, despite what seemed like the path that promised more and more, happiness was something we were not approaching, nor even understanding.
In education, the curriculum that would enable more of us to better understand the strengths and weaknesses of human behavior has yet to be developed for the secondary school level. The knowledge of how our hereditary traits and biochemistry interact in brain functions that govern our ability to learn, that affect our capacity to develop social skills, and that serve to initiate a very complex array of emotions, is fundamental to comprehending both the development of the individual and their decision making skills. There are some much needed insights here that could well explain the onset of manias, be they in our personal ambitions or a rapidly expanding economy where the cycle of euphoria is inevitably followed by a depression of equal intensity as sustainable limits are surpassed by unchecked zealousness.
The failures of our government are everywhere and readily apparent. It was the deregulated environment that allowed many of the excesses to go unchecked for so long, and anyone who thinks that this is a failure of just one political party is either not in possession of sufficient facts, or is in denial due to the fog of partisan loyalty. Those that think it began with 'Reagonomics', which George H. W. Bush referred to during his primary campaign against Ronald W. Reagan as 'voodoo economics', are not acknowledging the deregulation of the airline industry and telecommunications under President Carter. Every president and congress since then has had a hand in deregulating the banking, financial or some other sector, with the result that each administration had some major catastrophe to show for their efforts.
In a careful analysis of how structural deformities manifest themselves in government, the electoral process is the linchpin that controls the access to the wheel of government, and it is that very point through which so much corporate grease is funneled to smooth the otherwise significant friction that fundamentally democratic principles in our constitution represent. There are a great many fault lines running through what was once viewed as the solid bedrock on which our nation was built. Our legal system has a malleable quality which has allowed for incremental changes to undermine the effectiveness of the checks and balances that were such a prized element of our structure of government. Currently no effective controls guard against the tentacles of corporate influence that have so successfully manipulated the tax codes and created an anti-regulatory environment that opened the largest sectors of our economy to a casino styled risk taking that has reduced the financial security of the majority of Americans and now threatens the very livelihoods of millions more.
In our market place of daily life, the juggernaut of globalization is not an environment conducive to small and medium sized businesses, and rather than the panacea it was once described as, it is no different than a stacked deck of cards that gives unfair advantage to a multinational elite who have no strong national sentiments. Their relentless pursuit of profits and perceived efficiencies have led to the level of risk taking that now threatens us with a crisis of global proportions. A century ago such concern sparked a series of laws that effectively reduced the power of monopolies. Will the new leadership in Washington recognize this for the threat it is, and if so, how will they deal with it? In a world where the rules of commerce favor the largest corporate entities, is a stimulus package that promotes family ties, cultural values and the sense of community a compelling interest?
The situation is a global concern, and it is no longer clear that national policies in any one or even a limited number of countries can address it. Efforts by the International Accounting Standards Board are an interesting case, and the negative reaction on the part of the U.S. to implement the fair value accounting standards proposed are a sign that market volatility will not be reflected in held assets, thereby giving investors a skewed picture of the true financial strength of any institution. What we're clearly in need of is more scrutiny, so what's the logic here?
In individuals the embodiment of regulation is a self-discipline that correctly understands our best interests, in society it is those government institutions created to oversee the interactions of the educational and economic sectors of our nation. Recognizing that our truest freedom and that ill-defined 'pursuit of happiness' are the fruits of a balance between self-interest and social responsibility, we arrive at the starting point to understanding and correcting what really went wrong.
Hugo A. Roller
St. John

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